Fitzroy Crossing sees highest WA fuel price for the year as North West residents continue to feel price pinch

North West motorists are paying up to $2.54/L to fill up their tanks as they continue to feel the petrol price pinch at the bowser. The unprecedented prices, which are expected to keep rising as the fuel-price cycle flows to the regions in the coming weeks, are already impacting buyer behaviour and forcing the Federal Government to look seriously at slashing the national fuel excise. The highest price at a WA bowser in 2022 so far was at the Ngiyali Roadhouse in Fitzroy Crossing, which had ULP and diesel both at $2.54/L on March 15, diesel sitting at that price from March 12-15. It’s not much better for other North West towns either, with Broome fuel prices sitting around $2.40/L all of last week and Karratha averaging $2.32/L across the town. Benchmark fuel prices have been climbing around the world since the beginning of December as demand outstrips supply, industries once again gathering pace as COVID restrictions are eased. This price-climbing trend has been further impacted by Russia’s invasion of Ukraine, which has caused significant disruptions in oil and refined fuel trade routes. WA’s petrol price watchdog FuelWatch confirmed regional motorists usually bear the brunt of higher fuel prices, mainly due to higher wholesale prices in the regions, regional retailers selling lower fuel volumes which drive up marginal costs, lower levels of local competition in regional area, and regional retailers usually making less profits from non-fuel purchases. “In saying that there are some regional areas that have intense competition that can drive prices low,” a FuelWatch spokesperson said. “Additionally, in times when prices increase sharply as it has recently, regional prices may be lower than the metro as price movements are felt earlier in the metro.” There was some respite for those travelling between Port Hedland and Broome, with Pardoo Roadhouse offering Unleaded 91 for just $1.90/L — far less than Sandfire Roadhouse 150km north, who were charging $2.40/L. FuelWatch pointed out that fuel prices in the region don’t follow the same price cycle as Perth, mainly due to the smaller volumes of regional sales, meaning it takes longer to turn over existing stock before they replenish with new fuel at new wholesale prices. “It generally takes one to two weeks for movements in the international benchmark prices to flow on to Perth metropolitan retail prices, and generally up to a further four weeks to be felt in regional areas,” the spokesperson said. This could mean the worst is yet to come for fuel prices in the North West, however the Federal Government is believed to be actively considering cutting the fuel excise — the flat rate sales tax levied at the bowser — currently sitting at 44.2 cents/L. On Monday the New Zealand government announced it was slash the country’s fuel excise duty by 25 cents for the next three months.